EPF Cut: 2% Hike in Salary of Govt, Private Employees in the offing

What could be seen as good news for crores of private and government employees, the Centre is reportedly mulling slash in the employees’ social security contribution.

According to the Economic Times, the Labour Ministry is presently working on the contributory ceiling by the government towards universal social security for the employees and it is expected that it will recommend a 2% less contribution as compare to the current ceiling of 24 per cent.

If the report is to be believed, then the total PF contribution from one’s salary will decrease to 10% as against the current mandatory contribution of 12%.

Also Read: IRCTC: New Insurance Scheme launched for Railway Passengers

It is worth mentioning that 3.67% of one’s basic salary goes to the EPF kitty while 8.33% goes to the EPS or the employee’s pension scheme.

Meanwhile, the committee of the labour ministry which is looking into the same is likely to come with its recommendation by the end of August.

“We are enhancing the scale of coverage by five-fold. Hence, we think that going forward the contribution by and for each worker eligible for a social security cover will come down, benefitting both employee and the employer,” the ET quoted an official as saying.